Lucky Montana Denies Owing SARS R55 Million, Labels It a ‘Political Witch-Hunt’
Former Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana has strongly denied owing the South African Revenue Service (SARS) R55 million in taxes, claiming he does not owe “even a cent.” This comes after SARS publicly disclosed details of his tax debt, accusing him of 14 years of non-compliance and under-declaring income. Montana has labelled the agency’s actions a “political witch-hunt” and accused officials of fraud, while SARS has dismissed these claims as “false and vexatious.” The dispute escalated when Montana failed to retract his allegations, prompting SARS to reveal his tax records to defend its integrity.
As of 12 October 2025, the saga highlights ongoing tensions between high-profile figures and tax authorities in South Africa, where corruption probes and tax evasion cases often intersect with political narratives. Montana has scheduled a press conference to address the issues further, while SARS continues enforcement actions, including sequestration proceedings against him.
Montana’s Denial and Accusations Against SARS
In a post on X (formerly Twitter), Montana emphatically stated: “I do not owe SARS even a cent. I will address all the issues tomorrow during my presser.” He has accused SARS Commissioner Edward Kieswetter and other officials of conducting a politically motivated campaign against him, claiming they doctored a fake court judgment for sequestration and abused their power. Montana even opened a fraud case against them, asserting that the tax bill is fabricated.
This denial follows SARS’s media briefing on Saturday, where the agency outlined Montana’s tax history after he ignored a 24-hour ultimatum to withdraw his fraud claims. SARS invoked the Tax Administration Act to disclose confidential information, arguing it was necessary to counter misleading statements and protect the tax system’s credibility.
Montana’s response contradicts his earlier actions, as he submitted a compromise offer in August 2025 to settle the full R55,133,282.94 debt for just R5.4 million. Under the Act, such offers require the taxpayer to accept the debt as valid, which SARS highlighted as evidence against his denial.
SARS Outlines 14 Years of Non-Compliance
SARS detailed Montana’s persistent tax issues dating back to 2009, when he allegedly began under-declaring taxable income from various sources. He failed to submit returns for 2017, 2018, and 2019, triggering an audit in November 2020. Despite multiple extensions, Montana did not provide adequate documentation or fully address findings.
By July 2021, SARS issued additional assessments of R15.5 million for 2009-2019. This grew to R28 million by April 2022 with penalties and interest. Montana’s objections were invalid or late, leading to final assessments and recovery steps. A civil judgment was obtained, amended to R44.9 million, and the debt has since ballooned to over R55 million due to accruing interest.
SARS spokesperson Siphithi Sibeko emphasised that the matter predates Montana’s recent political involvements, denying any bias. The agency has pursued high court filings, warrants on properties from 2019-2022, and sequestration in May 2023 over non-payment. Montana has not filed an answering affidavit in the sequestration case.
The probe also questioned Montana’s luxury purchases, such as an Aston Martin and Mercedes vehicles, financed through unexplained sources, further supporting claims of undeclared income.
Broader Implications and Calls for Resolution
This tax saga adds to Montana’s controversial history, including his tenure at PRASA marred by allegations of irregular tenders and state capture links. He has been vocal in defending himself, often using social media to counter narratives.
For ordinary South Africans, the case underscores challenges in tax compliance among public figures and the role of SARS in enforcing accountability. With South Africa’s tax base under pressure amid economic woes, such high-profile disputes can erode public trust if not resolved transparently.
SARS has stated it will consider Montana’s settlement offer while proceeding with legal actions. Montana’s upcoming press conference may provide more details on his defence, potentially escalating the public feud.
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